Money Management

A new travel partnership could end up being lucrative for Walmart+ members. Read on to learn more. 

What happened

Walmart has partnered with Expedia to introduce a new travel service. Starting in late July, Walmart+ members can book their getaways through WalmartPlusTravel.com and get access to deals on everything from airfare to lodging to rental cars. Best of all, travel bookings will put cash back in members’ pockets.

So what

Many people have been eager to travel after spending much of the pandemic close to home. Walmart+ is now making it easier for members to access deals on travel and score free money at the same time.

Bookings through the Walmart+ portal will qualify for 5% Walmart Cash for hotels, vacation property rentals, car rentals, and activities. Airfare will qualify for 2% back in Walmart Cash, which is redeemable 30 days after travel and can be used to pay for future Walmart purchases or redeemed for actual cash in stores.

“We’re bringing together the ultimate savings membership and vacation booking site to deliver a first-ever travel-focused benefit for Walmart+ members,” said Venessa Yates, senior vice president and general manager of Walmart+.

Now what

Costco members have long gotten to benefit from the warehouse club giant’s travel services. Now, Walmart+ members will get similar travel benefits, including the top-tier customer service experience Expedia prides itself on.

But should this inspire you to sign up for a Walmart+ membership? At $98 per year, it’s cheaper than Amazon Prime and allows you to enjoy free shipping on Walmart.com orders of any size.

Walmart+ members also get to enjoy free grocery delivery provided they meet a $35 order minimum (which isn’t hard to do these days given inflation’s impact on food costs) and free access to Paramount+. Walmart+ members can also save $0.10 per gallon at select gas stations nationwide.

If these sound like perks you’ll get a lot of use from, then a Walmart+ membership could make sense for you. But if you don’t tend to order groceries online and don’t have a car, then a couple of the core benefits of the program will be off the table right there.

In fact, the introduction of Walmart+’s new travel program may not necessarily be a decision-maker for consumers so much as a nice new perk for those who are members already. But at a time when travel (and just about everything) has gotten expensive, scoring extra cash back certainly isn’t a bad thing.

Now, Walmart+ offers new members a free 30-day trial. So if you’re not sure you’ll get much value out of it, you could always give it a test run before having to commit to it financially.

Walmart+ says it can help members save more than $1,300 each year based on two grocery delivery orders and two Walmart.com orders each week. See how many orders you end up placing during your free trial to determine if continuing with a membership is worthwhile.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.

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It’s easy to see why the idea of investing more this year may be daunting. But read on to see why it’s still a smart idea. 

Investing money, whether in a brokerage account or a dedicated retirement account, is a great way to grow wealth over time. But if you’re hesitant to invest more of your money this year, you’re in good company.

A whopping 53% of Americans are hesitant to invest any additional money in the stock market for the foreseeable future, according to data from Allianz Life. And it’s not so difficult to see why.

There’s a lot to worry about these days

For one thing, inflation continues to be a problem for consumers despite the fact it’s been cooling consistently. But because living costs are still elevated, finding the money to invest with may be a challenge for some people.

And then there are recession fears to think about. Many financial experts remain convinced that the U.S. economy is going to take a turn for the worse at some point in 2023, or otherwise shortly thereafter.

While recessions don’t always go hand in hand with stock market declines, that’s often the case. So consumers may not want to pump more money into investments at a time when their portfolios may be poised to plunge.

Also, the reality is that it’s important to have cash on hand in a savings account ahead of a recession. So some people may be holding off on investing so they can boost their emergency funds.

Now to be clear, if your emergency fund needs work, then it’s best to prioritize that over investing. But if you’re set on emergency savings, then it pays to keep investing today, even if you’re worried about the economy.

Why investing really pays off

Any time you hold off on investing money of yours, you limit the extent to which it can grow. Let’s say you have $1,000 to invest with now, only you don’t go that route because you’re worried about a near-term recession.

The stock market has, over the past 50 years, generated an average annual 10% return before inflation, as measured by the S&P 500. If you invest $1,000 today and do nothing for the next 15 years, you could grow that sum into about $4,200, assuming an average return of 10% a year in your portfolio.

Wait 12 months to invest that money, and in 15 years, you’ll only end up with about $3,800. That’s a pretty big difference.

Also, if you opt to not invest in an IRA or 401(k) plan this year, you’ll miss out on the tax benefits of contributing to these accounts. Traditional IRAs and 401(k)s allow your contributions to go in tax-free. So if you put $3,000 into one of these accounts, that’s $3,000 of income the IRS can’t tax you on. And then, any gains in a traditional IRA or 401(k) are tax-deferred so you’re not paying the IRS anything on that money until the time comes to withdraw from your account.

Don’t give into fear

You may be truly scared to invest your money at a time like this, and that’s totally understandable. But do remember a few things.

First, you’re ideally not investing for a short period of time, but rather, a long one. So even if the stock market sees its share of turbulence later this year or next as a recession hits, it doesn’t mean you’re doomed to lose money. If your investments decline in value but you don’t sell them, there’s a good chance your portfolio will recover and then some in the long run.

Also, a recession won’t necessarily wreak havoc on your portfolio, especially if you make a point to diversify. This isn’t a guarantee, but it’s possible for unemployment levels to rise and consumer spending to slow down without stocks taking an absolute beating.

Right now, your primary goal should be to make sure you’re recession-ready. That means having an emergency fund with enough cash to cover at least three months of bills. But if you’re set on emergency savings and you’ve done whatever else you can to withstand a recession, then there’s really no reason not to invest the extra money you have.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Every partnership agreement should include a description of how duties will be distributed as well as a death and disability clause. Read on to learn why. 

You don’t have to create a partnership agreement by law in order to run a small business with a friend or a family member. But you should create one anyway.

A partnership agreement can help you set your company up for success by addressing key issues, like what should happen to the funds in your business bank account and who will be responsible for which tasks.

Not sure where to start with your partnership agreement? Here are four clauses that absolutely need to be included.

1. Details about partner duties

Your partnership agreement should include details about the role you will each play in the company. While you don’t have to assign every single job, it should be clear who will have authority to handle some of the major aspects of your business operations.

Providing a description of partner duties can help you ensure you are both on the same page about the level of responsibility you are each taking on. It can also ensure you don’t both want to be in charge of the same aspects of your operation, which could lead to conflict.

2. Distribution of profits and losses

Ideally, you and your partner will begin making a profit soon after starting your business. If you do, you’ll need to be clear on how the money will be divided up between you. You don’t want there to be conflict about how the money ends up being distributed.

If the company doesn’t make a profit right away, you’ll need insight into who will cover the cash shortfalls and who will declare the losses on their tax returns in order to lower their taxable income. You cannot both claim the same business losses, and you don’t want a fight over who gets this tax break when tax-filing season comes along.

3. A death and disability clause

It may be difficult to think about, but one of you could die or become disabled and unable to run the business. In that situation, things can become complicated. You’ll need to address what will happen.

For example, will the surviving business partners buy out the interest of the deceased owner and continue to run the company themselves? Or can the deceased person leave their interest in the company to a family member? If so, will that family member then become a part of actively managing the business and claiming profits and losses? Will that arrangement work for the other surviving business owners who could find themselves working with a new person?

This issue must be addressed. And if the other business partners need to buy out someone who dies, will there be enough money? In some cases, it makes sense for life insurance to be purchased on each partner that could be used to buy out the interest of one who passes. This way, their surviving family members get a payout and the company can maintain operations.

4. A dispute resolution process

Finally, it’s important to have a plan outlined in the partnership agreement for how conflicts will be addressed so you don’t find yourself in a stalemate if you disagree. If you can’t resolve a disagreement, it could be disastrous to your business operations.

By addressing these issues, you can avoid major problems down the line and maximize your chances the company will be a success for both you and your business partner.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More